The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how HP (NYSE: HPQ) and the rest of the hardware & infrastructure stocks fared in Q4.
The Hardware & Infrastructure sector will be buoyed by demand related to AI adoption, cloud computing expansion, and the need for more efficient data storage and processing solutions. Companies with tech offerings such as servers, switches, and storage solutions are well-positioned in our new hybrid working and IT world. On the other hand, headwinds include ongoing supply chain disruptions, rising component costs, and intensifying competition from cloud-native and hyperscale providers reducing reliance on traditional hardware. Additionally, regulatory scrutiny over data sovereignty, cybersecurity standards, and environmental sustainability in hardware manufacturing could increase compliance costs.
The 10 hardware & infrastructure stocks we track reported a slower Q4. As a group, revenues beat analysts’ consensus estimates by 1.1% while next quarter’s revenue guidance was in line.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 18.2% since the latest earnings results.
HP (NYSE: HPQ)
Born from the legendary Silicon Valley garage startup founded by Bill Hewlett and Dave Packard in 1939, HP (NYSE: HPQ) designs and sells personal computers, printers, and related technology products and services to consumers, businesses, and enterprises worldwide.
HP reported revenues of $13.5 billion, up 2.4% year on year. This print exceeded analysts’ expectations by 1.1%. Despite the top-line beat, it was still a slower quarter for the company with a slight miss of analysts’ EPS estimates.
"We are pleased with our Q1 performance, achieving revenue growth for the third straight quarter and advancing our strategy to lead the future of work,” said Enrique Lores, HP President and CEO.
Unsurprisingly, the stock is down 23.7% since reporting and currently trades at $25.32.
Read our full report on HP here, it’s free.
Best Q4: Pure Storage (NYSE: PSTG)
Founded in 2009 as a pioneer in enterprise all-flash storage technology, Pure Storage (NYSE: PSTG) provides all-flash data storage hardware and software that helps organizations manage their data more efficiently across on-premises and cloud environments.
Pure Storage reported revenues of $879.8 million, up 11.4% year on year, outperforming analysts’ expectations by 1.2%. The business had a satisfactory quarter with a solid beat of analysts’ EPS estimates but billings in line with analysts’ estimates.
Pure Storage delivered the highest full-year guidance raise among its peers. The stock is down 27.7% since reporting. It currently trades at $45.17.
Is now the time to buy Pure Storage? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: CompoSecure (NASDAQ: CMPO)
Pioneer of the luxury metal credit card that's in the wallets of affluent consumers worldwide, CompoSecure (NASDAQ: CMPO) designs and manufactures premium metal payment cards and secure authentication solutions for financial institutions and digital asset storage.
CompoSecure reported revenues of $100.9 million, flat year on year, falling short of analysts’ expectations by 1.6%. It was a disappointing quarter as it posted a significant miss of analysts’ EPS estimates.
As expected, the stock is down 9.2% since the results and currently trades at $10.90.
Read our full analysis of CompoSecure’s results here.
IonQ (NYSE: IONQ)
Founded by quantum physics pioneers from the University of Maryland and Duke University in 2015, IonQ (NYSE: IONQ) develops quantum computers that process information using trapped ions to solve complex computational problems beyond the capabilities of traditional computers.
IonQ reported revenues of $11.71 million, up 91.8% year on year. This number beat analysts’ expectations by 15.9%. Aside from that, it was a slower quarter as it logged a significant miss of analysts’ EPS estimates.
IonQ pulled off the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is down 3.4% since reporting and currently trades at $28.90.
Read our full, actionable report on IonQ here, it’s free.
Hewlett Packard Enterprise (NYSE: HPE)
Born from the 2015 split of the iconic Silicon Valley pioneer Hewlett-Packard, Hewlett Packard Enterprise (NYSE: HPE) provides edge-to-cloud technology solutions that help businesses capture, analyze, and act upon their data across hybrid IT environments.
Hewlett Packard Enterprise reported revenues of $7.85 billion, up 16.3% year on year. This result surpassed analysts’ expectations by 0.5%. However, it was a slower quarter as it recorded a significant miss of analysts’ EPS guidance for next quarter estimates and a miss of analysts’ EPS estimates.
The stock is down 7.2% since reporting and currently trades at $16.64.
Read our full, actionable report on Hewlett Packard Enterprise here, it’s free.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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